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Exam 4: Types of Business Ownership

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Question 31

True/False

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Corporations are forbidden by law to enter joint ventures.

A) True
B) False

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Question 32

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Profits of a large corporation are taxed twice, once as corporate income and again as personal income of stockholders.

A) True
B) False

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Question 33

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Sears Holding Corporation is incorporated in Delaware, but when it operates in Illinois and Texas, it is considered a(n) ____ corporation in those states.

Which of the following would least likely be stated in the articles of partnership?

Genetech, a biotechnology firm engaging in the new field of genetic engineering, has asked your advice about remaining independent and temporarily gaining access to the marketing and manufacturing expertise it lacks from another firm.You would suggest

Mercedes-Benz, which is chartered as a corporation in Germany but conducts much of its business in the United States, is known as a(n) ____ in the United States.

Angela is tired of her boss as well as corporate UK in general.She decides she would like to start a business where no one tells her what to do, and she can always make the decisions.The best form of business for Angela is a(n)

A limited-liability company is

B&G, Inc. A year ago, Kevin went to work for B&G, Inc.He has worked for the finance department ever since he started.He noticed that the corporation was only taxed as though it were a partnership.This was something that he found very odd when he first started working for the company, but he later realised it was a fairly common practice.He recognised that this was one of the advantages of this type of corporation. While the job was challenging, Kevin was not happy.He wanted to work for a company whose main goal was to provide service to the community, not to make a profit.However, Kevin felt that, considering his present financial situation, he had to continue working for B&G, Inc.A week later, Kevin discovered there was going to be a merger between B&G, Inc.and one of its major competitors.Kevin's boss informed him that he would be getting a promotion and a raise.While he was excited about making more money, he still was not happy.He knew then that he would not be working for the company for long. -Refer to B&G, Inc.What type of organisation was Kevin considering switching to?

Most stockholders attend a corporation's annual meeting and vote in person.

Units of ownership in a master limited partnership (MLP) are often sold on organised security exchanges.

When starting a corporation, people submit articles of incorporation to

All of the following are disadvantages of corporations except

Tracy is considering expanding his business and has several potential new investors in mind.He originally wanted to form an S-corporation to protect the liability of the investors, but he is now considering a limited-liability company instead because he knows there can be only ____ stockholders in an S-corporation.

When Alyssa decides that she no longer wants her Radio Shack stock, she will discover that a related benefit of a corporation is

The ____ is a legal document that lists and explains the terms of the partnership.

The purchase of one corporation by another is referred to as a

Local residents have always thought the small store on the corner of Locust and Congress was a partnership between John and Joe, two brothers from the neighbourhood.But Joe is the real owner.This probably means that the store is a

Kim, Sandra, Jerry, and Wilma belong to a business that buys groceries in bulk, then distributes them to members.This type of business is called a

When compared to partnerships and corporations, sole trader account for ____ percent of total sales.